World Bank Grants $4M to Boost Indigenous Leadership in Costa Rica’s Forest Conservation

The project, titled the National Project to Support Social Inclusion in the Emission Reductions Program, will be implemented by the Environmental Bank Foundation (FUNBAM).

The World Bank has approved a US$4 million grant to Costa Rica to strengthen Indigenous Peoples’ leadership in forest conservation and ensure their communities gain direct access to the benefits of the country’s Emission Reductions Program from Deforestation and Forest Degradation. The initiative, launched on August 11, is designed to empower Indigenous communities with a decisive role in shaping, approving, and implementing conservation investments, while also promoting inclusive decision-making on sustainable land use.

A First for Indigenous-Led Environmental Governance

The project, titled the National Project to Support Social Inclusion in the Emission Reductions Program, will be implemented by the Environmental Bank Foundation (FUNBAM). It is funded through the World Bank’s EnABLE (Enhancing Access to Benefits while Lowering Emissions) trust fund, which complements the Forest Carbon Partnership Facility (FCPF) by focusing on social inclusion and equitable benefit-sharing.

For the first time in Costa Rica’s environmental policy, Indigenous Peoples will directly lead in defining priorities, approving activities, and overseeing project execution. This governance structure is a milestone in environmental management and acknowledges the invaluable role of Indigenous communities in protecting forests and combating climate change.

Voices from the Leadership

Costa Rica’s Minister of Finance, Nogui Acosta Jaén, hailed the project as a landmark initiative:

“For the first time, Indigenous Peoples will directly lead the definition and execution of conservation investments. We celebrate this partnership, which recognizes their ancestral knowledge, strengthens their autonomy, and contributes to more inclusive and sustainable development.”

Carine Clert, World Bank Country Manager for Costa Rica and El Salvador, emphasized the global significance of the initiative:

“The worldview and traditional knowledge of Indigenous Peoples regarding land and natural resources are essential for a livable planet. This project’s design is unique—it was entirely based on the vision, voice, and priorities of Indigenous Peoples, and it offers innovations that can inform similar efforts worldwide.”

Communities and Beneficiaries

The project will directly benefit eight Indigenous groups in Costa Rica: Cabécar, Bribri, Ngabe, Térraba, Boruca, Huetar, Maleku, and Chorotega. Special emphasis will be placed on the participation of Indigenous women and youth, who play critical roles in managing natural resources, agriculture, and community well-being.

Investments for Conservation and Sustainable Livelihoods

The grant will fund activities that contribute to reducing carbon emissions and preserving biodiversity. This includes:

• Capacity-building for Indigenous organizations to access and manage benefits from the Emission Reductions Program.

• Training in new agricultural techniques, climate-smart technologies, and other sustainable economic activities.

• Equipment and supply purchases to support community-led conservation and livelihood projects.

• Initiatives to secure land tenure and strengthen climate resilience.

Infrastructure and Environmental Education

The project also invests in infrastructure and education to foster long-term environmental stewardship:

• Construction of rainwater harvesting systems and small-scale irrigation facilities.

• Introduction of efficient technologies to reduce environmental impact.

• Development of interpretive trails, visitor centers, and environmental education programs that promote both conservation and sustainable tourism.

A Model for Inclusive Climate Action

By combining traditional knowledge with modern sustainability practices, the project seeks to create a model where environmental conservation directly benefits local communities. It demonstrates how social inclusion, climate resilience, and biodiversity protection can be advanced together, ensuring that Indigenous voices are central in the fight against climate change.

The initiative not only reinforces Costa Rica’s global reputation as a leader in environmental policy but also sets a precedent for Indigenous-led governance in conservation—a model that can be replicated in other countries striving for equitable and sustainable forest management.